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On June 30, 2021, Blondie Fixtures was considering alternatives to bolster its cash position Option One called for transferring $490,000 in accounts receivable to Dogwood

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On June 30, 2021, Blondie Fixtures was considering alternatives to bolster its cash position Option One called for transferring $490,000 in accounts receivable to Dogwood Finance Company without recourse for a 5% fee Option Two calls for Blondie to transfer the $490,000 in receivables to Dogwood with recourse. Dogwood's charges a 4% fee for receivables factored with recourse Option Two meets the conditions to be considered a sale, but Blondie estimates a $3,900 recourse liability. Under either option, Dogwood will immediately remit 90% of the factored receivables to Blondie, and retain 10% When Dogwood collects the remaining receivables, it remits the amount, less the fee, to Blondie. Blondie estimates that the fale value of the final 10% of the receivables is $29,500 (ignoring the factoring fee) Required: 1. Prepare any necessary Journal entry or entries If receivables are factored under Option One. 2. Prepare any necessary Journal entry or entries if receivables are factored under Option Two Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any necessary journal entry or entries if receivables are factored under Option One. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 Record the entry if receivables are factored under option one. Note: Enter debits before credits General Journal Debit Transaction Credit Required: 1. Prepare any necessary journal entry or entries if receivables are factored under Option One. 2. Prepare any necessary journal entry or entries if receivables are factored under Option Two. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any necessary journal entry or entries if receivables are factored under Option Two. (If no er transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry if receivables are factored under option two. Note: Enter debits before credits. Transaction General Journal Debit Credit 1

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